Dutch Bros is accelerating its expansion by acquiring the real estate of a bankrupt fast-casual salad chain. The fast-growing drive-thru coffee chain said it has entered into an agreement to acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. (See list of locations at end of article.) The purchase price was not revealed. Salad and Go filed for bankruptcy on Aug. 4, and abruptly closed all its locations on the following day. Similar to Dutch Bros, Salad and Go operated a drive-thru model. Its menu featured made-to-order salads, breakfast options and more.  Dutch Bros expects to convert the Salad and Go locations its format in 2027. The deal is expected to close in the third quarter. Earlier this year, Dutch Bros acquired the 20-unit Clutch Coffee Bar chain. The coffee chain has set a goal of 2,029 shops in 2029, with a long-term goal of 4,000 shops in the next 10-to-15 years. (As of June 30, it had 1,225 locations.)

Recently, retailers have had a hard time finding space in which to put new stores. The problem is that there are not a lot of buildings going up to begin with. Retail construction completions fell to 5.7 million square feet in the second quarter, setting record lows for both quarterly and rolling four-quarter totals, according to CBRE. The commercial real estate firm cited rising construction costs and labor shortages. The low level of construction has kept the availability of retail space tight. Retail space availability held at an extremely low 4.9% in the second quarter, according to the real estate firm. “That has made it very difficult for retailers who are in expansion mode trying to find desirable, well-located space,” said Ebere Anokute, Americas head of retail research for CBRE, who was previously a real estate manager for Warby Parker. He added that retailers have been less willing to move into older or lower-cost properties. “We’re seeing a major flight to quality in the industry right now.”

In a world in which digital marketing continues to grow, a new brand is still mailing a catalog for the first time every month. That’s not the strange part, however. What is strange is WHO is mailing these catalogs: e-commerce retailers. Amazon, Wayfair, One King’s Lane and Everlane are just a few examples of formerly online-only brands that took the leap into the catalog sphere. Ironically, one such catalog I received in the mail is called “OnlineShoes.com”! Furthermore, brands which have traditionally sold through brick-and-mortar stores are increasingly adding catalogs to drive traffic to both their website and stores. In many cases, these brands have discovered that by adding a catalog to the marketing mix, customer value increases fourfold! According to the Direct Marketing Association, close to 90 million Americans currently purchase from a catalog. Interestingly, nearly 60 percent of them are women. So why do catalogs still work in a digital world? Check out our recent blog to learn more at: https://www.jschmid.com/blog/designed-for-growth-the-catalogs-resurgence/